Daily Fundamental Analysis

Non-Farm Employment Numbers Today

February 01, 2012 | 08:01 AM

Posted byDavid Mason

Weak housing data and sluggish consumer confidence in the United States caused investors to dump equities and search for a safer haven with the greenback yesterday. The EUR/USD is down this morning by 0.138% and trading at 1.3066. Gold is down by 0.02% and trading at 1740.05. The Euro took a hit yesterday as investor confidence in the single currency waned after a sharp rise in Portuguese bond yields. Greece also hampered the Euro due to the unresolved private debt restructuring. Despite positive unemployment numbers from Germany, the Euro remains an uncertainty for investors at best. The Czech Republic’s unwillingness to agree with the new European Stability Mechanism was also a sore point.

American housing prices plummet

The housing market in the United States continues its lackluster showing in November; with prices continuing to drop in response to consumer uncertainty regarding the economy and employment stability. 19 of 20 major American cities covered in the Case-Schiller index saw a decline in housing prices, with the exception of Phoenix Arizona. Economists believe that future data for December and January will be more positive and in line with the slowly resurging American economy.

Non-Farm Employment Numbers

The all-important Non-Farm Employment numbers will be released today in the United States at 1:15pm EST. This report estimates the number of employed individuals compared to the previous month. In January, the employment numbers trounced the forecast and caused a sharp rise in the USD against other major currencies. Pundits are predicting that almost 200 thousand jobs have been added in the United States. Market volatility is likely to occur. If that was not enough, the ISM Manufacturing PMI will be released at 3:00pm EST. This report measures economic health and how quickly businesses are reacting to current market conditions.

Slight dip in oil

Crude oil reached a weekly low today, due mainly to poor consumer confidence in the United States along with a decline in demand. Despite the excitement and anxiety surrounding oil, both financially and politically, crude remains steady overall, trading yesterday at a high of 98.75 and a low of 98.23. In early trading today, oil is at 98.64, up 0.16%. Brent oil is up as well, trading at 111.28.

Indices drop on Wall Street

Disheartening data from the U.S. yesterday caused stocks to take a hit, as traders withdrew from equity in favor of the USD. The US 30 is down this morning by 0.16% at 12632.91. The S&P 500 is down as well by 0.05% and sitting at 1312.40. European indices are up this morning, with the UK 100 showing gains of 0.19%, currently at 5681.61.

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